GBPAUD Bearish Continuation: Short Opportunity at ResistanceThe pair is trading around 1.94808 at time of posting, presenting a potential short opportunity as it approaches resistance.
Resistance Zone:
The pair is testing the 1.9480–1.9500 resistance area, which coincides with the 50 EMA and 200 EMA acting as dynamic resistances.
Multiple bearish "3s-Bear" signals highlight selling pressure near this level.
Indicators:
The Stochastic RSI is approaching overbought territory, suggesting the upside momentum may weaken soon.
Volume remains relatively low, indicating a lack of strong buying conviction.
Entry Point:
Consider entering a short position at 1.9480–1.9490, after confirmation of rejection or bearish candlestick patterns (e.g., bearish engulfing).
Stop Loss:
Place the stop loss above the swing high at 1.9530 to account for volatility.
Take Profit:
Target 1: 1.9420 (immediate support level).
Target 2: 1.9350 (major support zone near the "Strong Low").
Risk-Reward Ratio:
This setup offers a favorable risk-reward ratio, assuming price respects the resistance and trends lower.
Notes:
If the price closes above 1.9530, the bearish scenario is invalidated, and the pair may continue higher toward 1.9600. Wait for confirmation signals before entering the trade.
